pays out 40% as its not clear

COURSE: WORKSHEET 1 CORPORATE FINANCE FIN 202 - 2020(2) Ref: RW LONG TERM FINANCIAL PLANNING 17,700 Debe 1. Consider the following simplified financial statements for the Phillips Corporation Income Statement Balance Sheet Sales $23,000 Assets 5.200 Costs 16,700 Equity 12.500 Net Income $ 6,300 Total 17,700 Total 17,700 Phillips has predicted a sales increase of 15 percent. 2. Costs and assets increase with sales, but debt and equity do not. Assume Phillips Inc. pays out 60% of net income in the form of a cash dividend. Create the pro forma statements and reconcile them. Determine the external financing needed? Assume tax rate -30% pxyz Corporation Proforma Income Statement xyz Corporation Pro forma Balance Sheet Current Liabilities Current Assets Sales A/Payable Costs Notes payable Taxable income Total Taxes ( ) Long-term debt Net Income Equity Dividends) Fixed Assets Retained Earnings TOTAL ASSETS TOTAL LIAB & EQUI